ITR-U: CBDT Releases Updated Income Tax Return to update income/reduce loss within 48 months

The Ministry of Finance (Department of Revenue) has issued a notification dated 30th March, 2026 notifying Income-tax (Ninth Amendment) Rules, 2026. As per the notification, Updated Income Tax Return (ITR-U) to update income/reduce loss within 48 months has now been released in line with Finance Act 2026.

The new rules will be known as Income-tax (Ninth Amendment) Rules, 2026. These rules are applicable from the date of their publication.

What are various Reasons for updating your income?

• Return previously not filed
• Income not reported correctly
• Loss not reported correctly (In case of reduction of loss) Wrong heads of income chosen
• Reduction of carried forward loss
• Reduction of unabsorbed depreciation
• Reduction of tax credit u/s 115JB/115JC
• Wrong rate of tax
• Return in response to notice u/s 148

Additional Tax for late filing of ITR-U

Although the government has extended the time limit to four years, filing an ITR-U comes with an extra cost. You must pay the regular tax and interest, along with an additional tax. If you file within 12 months, you need to pay 25% extra on the tax and interest. This increases to 50% if filed within two years, 60% within 36 months, and 70% if filed between 36 and 48 months.